Tribunal allows appeals, instructs CIT(A) for merit decision after granting hearing opportunity. Delay condoned, emphasizing justice.

The Tribunal allowed the appeals for statistical purposes, directing the CIT(A) to decide on merits after granting the assessee a hearing opportunity. The delay in filing appeals was condoned due to the cooperative nature of the assessee society and reasons provided, emphasizing justice and fair play. The decision was pronounced on 22.1.2015.

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Issues Involved:
1. Non-deduction of TDS on payments made by the assessee.
2. Disallowance of expenses under Section 40(a)(ia) of the Income Tax Act.
3. Charging of interest under Section 201(1)/(1A) of the Income Tax Act.
4. Condonation of delay in filing appeals.

Detailed Analysis:

1. Non-deduction of TDS on Payments:
The assessee, a cooperative society engaged in manufacturing sugar, failed to deduct tax on payments exceeding Rs. 20,000 towards harvesting, transportation, and law and consultancy charges. The Assessing Officer (AO) disallowed these payments under Section 40(a)(ia) of the Income Tax Act for various assessment years (2005-06 to 2012-13). For assessment years 2009-10 to 2012-13, the AO also charged TDS/interest under Section 201(1)/(1A) for payments made without TDS.

2. Disallowance of Expenses under Section 40(a)(ia):
The AO disallowed the expenses due to non-deduction of TDS. The disallowance was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)], who did not admit the appeal on the grounds of limitation. The CIT(A) observed that the agreement between the appellant deductor and the harvesting contractor had been acted upon, and the deductor was found to be in default for not deducting TDS on the payments made.

3. Charging of Interest under Section 201(1)/(1A):
The AO charged interest under Section 201(1)/(1A) for non-deduction of TDS on various payments, including harvesting, transportation, and commission (incentive) payments. The total demand payable, including interest, was calculated for different assessment years.

4. Condonation of Delay in Filing Appeals:
The CIT(A) did not condone the delay in filing the appeals, citing that the appellant failed to establish sufficient cause for the delay. The CIT(A) referenced various judicial precedents, emphasizing that ignorance of law is not a ground for condonation and that the appellant had legal advice available. The CIT(A) concluded that the appellant acted without due diligence and did not provide a valid explanation for the delay.

Tribunal's Decision:
The Tribunal considered the detailed chart of delays and the reasons provided by the assessee, including obtaining legal advice and financial difficulties. The Tribunal noted that the assessee society operates on a cooperative basis and had reasonable cause for the delay. Emphasizing the need for justice and fair play, the Tribunal condoned the delay in filing the appeals and restored the matter to the CIT(A) for a decision on merits, ensuring adequate opportunity for the assessee to be heard.

Conclusion:
The appeals were allowed for statistical purposes, and the CIT(A) was directed to decide the appeals on merits after giving the assessee an opportunity of hearing. The decision was pronounced in open court on 22.1.2015.

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